Introduction to Wine Investment Fund Canada
Question and Answer with Kat Inokai, Manager of Marketing and Operations, Accilent Capital
What is Accilent all about?
“We’re a boutique investment firm in the heart of Toronto, and we specialize in alternative assets and commodities. We’re a youthful organization with a dynamic team and our key players have all had major careers working for the big financial institutions. That experience really gave them a unique perspective... and Accilent was founded to deliver what we think the money management industry really needs, and make those opportunities more accessible to investors.”
You mentioned ‘alternative assets’ – how do you define that?
“Well, traditionally, alternative assets are commodities, real estate, private investments in companies, tax-oriented investments, and collectibles. We’re focused on developing these products because ultimately, they help investors diversify their portfolios. We do have products that target each of these areas specifically, but I think one of the more interesting and relatable [from an investor standpoint] is from our collectible asset class; and that’s our wine fund.”
How do you make an investment out of wine?
“First, I think I’ll tell you how we don’t make an investment out of wine... A lot of people hear the words ‘wine fund’ and they either get excited or pull their noses up for the wrong reasons. You’ll see a lot of seasoned investors hesitate because they might think that a wine fund is almost too alternative, and many wine enthusiasts get the impression that they will be involved in wine tastings, or building up their cellar. Actually, neither of these describe our investment thesis concerning wine. We haven’t developed a futures fund, this isn’t an ‘en primeur’ concept; we’re not buying shares of wine companies, and we’re not a wine club. We don’t conduct tastings and speculate about retail value in other words. We actually think of it along the lines of Oil or Gold because it’s just as much of a commodity. In this case, we are investing in the commodity itself, and we are actually working with some of the pioneers in wine investment, our U.K. based sub-managers, including Rodney Birrell and Andrew della Casa who have been major innovators with regard to re-contextualizing wine with sheer commodity appeal. They have had enormous success in the UK with their own UK-based The Wine Investment Fund, and we’re extremely happy to have them as our investment specialists.”
How did Accilent decide to add a wine fund?
“Speaking very generally on the market side of things, the demand for wine has been increasing; it has a restricted supply and a growing demand and consumption is continuing to increase in China and in India. It makes an excellent diversifier without sacrificing performance and historically returns have been good, so really, Dan Pembleton, Accilent’s president had been looking for an opportunity to develop this as a product for Canadian Investors for quite some time. It just so happened that Dan and Rodney Birrell were sitting on the same investment board, and they would often talk about the UK based Wine Investment Fund, and it’s performance... so it was only a matter of time before they decided to harness the performance of the UK managers and make it accessible to Canadians through Accilent’s licenses and registrations.”
What are the benefits of investing in wine?
“Primarily prices move independently from other stocks and bonds - it just steadily increases in value. Also, the way that our sub-managers buy the wine meets incredibly strict criteria that ultimately lowers risk to the investor. They don’t buy trophy wines, and as I said before they don’t buy en primeur or [futures as it’s known here] because of the volatility. Also, another huge benefit is that we’re buying primarily from Bordeaux. The wines in our portfolio have got a natural maturation process. So instead of taking a chance on wines that haven’t matured yet, where you’re not assured of their value, [as you’re prone to do with the en-primeur or futures scenario] these wines are only bought after 4 or 5 years when they’ve already established a reputation for being a strong vintage.
On top of that, the investments are bonded, so you’re not at risk if the wine spoils, and again, because you’re investing in the commodity itself, you aren’t responsible for storing it, and insuring it.
How can I get more information?
“The easiest way to get more information about Accilent and Wine Investment Fund Canada is to give us a call or send us an email. We’ve got a toll free number 1-877-429-9779, you can email us at service@accilentcapital.com, or you can visit our website, www.accilentcapital.com. We do have some great collateral material you can download, including our newsletter Right on the Money, as well as Wine Investment Fund Canada specific information. You can also request the offering documents for the fund if you’re considering it, by phone, email, or through the website.”
Please feel free to call us weekdays between 9:00am and 5:30pm [EST] toll-free at 1-877-429-9779, or locally at 416-429-9779; or email us anytime at service@accilentcapital.com.